Oil Soars on Biden Remarks
by Bloomberg | Antonia Mufarech, Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil surged after President Joe Biden, when asked if he would support Israel striking Iran’s oil facilities, responded “we’re discussing that.”
West Texas Intermediate surged as much as 5.5% to approach $74 a barrel, while Brent crude climbed above $77.
The oil market has been transfixed by the latest crisis in the Middle East, which comes after a year of turmoil in which Israel has faced off against Iran and its proxies in Gaza, Lebanon, Yemen and elsewhere. The region accounts for about a third of global supply, and traders are concerned that the latest escalation could hit flows if energy facilities are attacked or supply routes are blocked.
A major strike by Israel on Iran’s export capacity could take 1.5 million barrels of daily supply off the market, Citigroup Inc. analysts including Francesco Martoccia said in a note on Wednesday. If Israel struck minor infrastructure, such as downstream assets, 300,000 to 450,000 barrels of output could be lost, the analysts said.
“These developments add another layer of uncertainty to the oil market, with the ultimate impact on global oil balances and prices hinging on the degree of Israel’s response, and whether we see any physical disruption to the Iranian oil industry,” they said.
by Bloomberg | Antonia Mufarech, Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas